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Debts (Tables) | 12 Months Ended
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Jun. 30, 2016
Debt Disclosure [Abstract] |
Components of Notes Payable and Capital Leases | Notes and leases payable consisted of the following:
|  |  |  | As of June 30, 2016 |
|  |  |  |  |  |  | Current |  |  | Long-Term |
Name |  |  |  | Total |  |  | Maturities |  |  | Maturities |
D&O Insurance |  | (1) |  | $ | 65,114 |  |  | $ | 65,114 |  |  | $ | - |
HSBC Loan |  | (2) |  |  | 93,704 |  |  |  | 93,704 |  |  |  | - |
Loan Payable Bank |  | (3) |  |  | 3,792,907 |  |  |  | 3,792,907 |  |  |  | - |
Loan From Related Party |  | (4) |  |  | - |  |  |  | - |  |  |  | - |
|  |  |  |  | 3,951,725 |  |  |  | 3,951,725 |  |  |  | - |
Subsidiary Capital Leases |  | (5) |  |  | 966,051 |  |  |  | 488,359 |  |  |  | 477,692 |
|  |  |  | $ | 4,917,776 |  |  | $ | 4,440,084 |  |  | $ | 477,692 |
|  |  |  |  | As of June 30, 2015 |
|  |  |  |  |  |  |  |  | Current |  |  |  | Long-Term |
Name |  |  |  |  | Total |  |  |  | Maturities |  |  |  | Maturities |
D&O Insurance |  | (1) |  | $ | 79,872 |  |  | $ | 79,872 |  |  | $ | - |
HSBC Loan |  | (2) |  |  | 447,161 |  |  |  | 322,349 |  |  |  | 124,812 |
Loan Payable Bank |  | (3) |  |  | 2,892,961 |  |  |  | 2,892,961 |  |  |  | - |
Loan From Related Party |  | (4) |  |  | 129,979 |  |  |  | 129,979 |  |  |  | - |
|  |  |  |  | 3,549,973 |  |  |  | 3,425,161 |  |  |  | 124,812 |
Subsidiary Capital Leases |  | (5) |  |  | 833,872 |  |  |  | 471,192 |  |  |  | 362,680 |
|  |  |  | $ | 4,383,845 |  |  | $ | 3,896,353 |  |  | $ | 487,492 |
(1) The Company finances Directors’ and Officers’ (“D&O”) liability insurance as well as Errors and Omissions (“E&O”) liability insurance, for which the total balances are renewed on an annual basis and as such are recorded in current maturities. The interest rate on the insurance financing was 0.49% as of June 30, 2016 and 2015, respectively. (2) In October 2011, the Company’s subsidiary, NTE, entered into a loan agreement with HSBC Bank to finance the acquisition of 51% of a controlling interest in Virtual Leasing Services Limited. HSBC Bank guaranteed the loan up to a limit of £1,000,000, or approximately $1,333,333 for a period of 5 years with monthly payments of £18,420, or approximately $24,560. The interest rate was 4% which is 3.5% above the bank sterling base rate. The loan is securitized against debenture comprising of fixed and floating charges over all the assets and undertakings of NTE including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future. Interest expense for the years ended June 30, 2016 and 2015 was $12,846 and $47,255, respectively. This facility requires that NTE’s adjusted tangible net worth would not be less than £600,000. For this purpose, adjusted tangible net worth means shareholders’ funds less intangible assets plus non-redeemable preference shares. In addition, NTE’s cash debt service coverage would not fall below 150% of the aggregate debt service cost. As of June 30, 2016, NTE was in compliance with this covenant. (3) The Company’s subsidiary, NetSol PK, has an export refinance facility with Askari Bank Limited, secured by NetSol PK’s assets. This is a revolving loan that matures every six months. Total facility amount is Rs. 400,000,000 or $3,792,907. The interest rate for the loans was 4.5% and 7.5% at June 30, 2016 and 2015, respectively. Interest expense for the year ended June 30, 2016 and 2015 was $148,475 and $146,264, respectively. This facility requires NetSol PK to maintain a long term debt equity ratio of 60:40 and the current ratio of 1:1. As of June 30, 2016, NetSol PK was in compliance with this covenant. (4) In March 2014, the Company’s subsidiary, VLS, entered into a loan agreement with Investec. The loan amount was £150,000, or approximately $200,000, for a period of two years with annual payments of £75,000, or approximately $100,000. The interest rate was 3.13%. As of June 30, 2016, VLS has paid in full this facility. All future payments of the loans described in the above sub notes 1 to 4 are considered current maturities. (5) The Company leases various fixed assets under capital lease arrangements expiring in various years through 2018. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are depreciated over the lesser of their related lease terms or their estimated useful lives and are secured by the assets themselves. Depreciation of assets under capital leases is included in depreciation expense for the years ended June 30, 2016 and 2015.
Schedule of Aggregate Minimum Future Lease Payments Under Capital Leases | Following is the aggregate minimum future lease payments under capital leases for the year ended June 30, 2016:
|  | Amount |
Minimum Lease Payments |  |  |  |
Due FYE 6/30/17 |  | $ | 548,023 |
Due FYE 6/30/18 |  |  | 316,115 |
Due FYE 6/30/19 |  |  | 195,956 |
Total Minimum Lease Payments |  |  | 1,060,094 |
Interest Expense relating to future periods |  |  | (94,043 | )
Present Value of minimum lease payments |  |  | 966,051 |
Less: Current portion |  |  | (488,359 | )
Non-Current portion |  | $ | 477,692 |

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- Definition Tabular disclosure of future minimum lease payments as of the date of the latest balance sheet presented, in aggregate and for each of the five years succeeding fiscal years, with separate deductions from the total for the amount representing executor costs, including any profit thereon, included in the minimum lease payments and for the amount of the imputed interest necessary to reduce the net minimum lease payments to present value. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6455398&loc=d3e45280-112737 + Details
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